'Staging' Homes with Rented Art

Val

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This is interesting. Staging Homes with Works of Art
I wonder if the real estate people would share their commissions with us (when the market picks up)? And I wonder what kind of insurance policy the gallery has to "loan" $20,000 pieces of art? Or how much they would "rent" them for?

Anyone here do this?
 

BILL WARD

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I'v had a copule of these approach me to do this for them...NO monetary incentives--were kinda miffed that I asked them for a rental type deal...just 'we'll allow you to populate our homes(model & reselling) and you can put your business card on the artwork'--big "oh boy" on THAT! Ferengui rules of aqusition #761---aint no profit to be made doin that!
 

JFeig

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" A rental fee of three percent of the painting's sale value will keep it hanging in a house for three months."

I can't see that handling insurance liability, much less your cost of having inventory tied up!
 

Val

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Yes, how nice of us to decorate and help sell their real estate for them! Like putting art in resteraunts for sale. I have no interest in doing this, all I can see are headaches. I just thought it was an interesting article about how influential art can be in our daily lives.

The photo that came with the original article was a gallery-wrapped canvas painting, no frame...ergh.
 

Jerry Ervin

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When I looked into this, I found that there was no money in it.

Some furniture rental places will comp the art rental to get home builders to rent their furniture. In turn, the furniture rental places buy the absolute cheapest plastic junk that they can find. Why would they buy junk you may ask, because there is no money in it.
 

PaulSF

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There's a real opportunity with this. There is a whole new industry of professional stagers out there. They supply the furniture and furnishings to people selling their homes. Usually the real estate broker has relationships with one or more stagers that he or she will use. So the stager needs an inventory of art to hang on the walls. Consequently, there is an opportunity to sell framed art to these stagers in enough quantities to make it worthwhile: 3 dozen or 4 dozen pieces, for example.
 

Val

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So Paul, these people buy the art rather than renting it? Now, that I might be interested in!
 

Paul N

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I had the same wonderful offer as Bill Ward a few months ago....
fire.gif


The realtor said that she's doing me and the artisst....a big favor!
 

Rozmataz

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"If it sounds too good to be true, it is"

Why do people that make these "offers" (requests) seem to think it is in our best interest - when it only makes it so they don't have to spend any money!!

I spoke with a gal who does have a staging company - and like anyone else they are trying to get what they need to run their business for as little dollars out as possible - so for them to stage a home with custom framed pieces does not benefit them cost-wise - and for us to do it at our expense - does not benefit us.

I had a neighbor/salon employee help select and design art and he told me blatantly that he would "get me to hang it in the shop for free" - that he was very persistent and that was what would happen. It didn't. I sold the art to the owner and it still looks gorgeous!!

Everyone is looking for a deal.
 

JFeig

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One thing to think about... is the rate a tool rental company charges for their tools (per hour - day-week).

They charge a lot more than 3% for 3 months! More like that amount per day - or more.
 

Grumbling Mike

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I think I've found an answer to home staging rentals, what do you think?

rent for 5%/month of total value plus instalation

a 5000.00 piece would be 250.00 for 30 days plus $80 for the install (330.00)
keep the work listed on website for sale if someone wants to buy it retain right to replace painting with another from same artist for duration of agreement.
make rental a 250.00 minimum
consutation available for $80/visit
 

RParrish

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Hmnnn never had a request for such a service, my brother in law has been staging homes for sale for several years now. He buys all his "art" (typical stuff) and accessories at Home Goods or TJ Maxx, always on clearance too, spends no more than $50 bucks for a piece. He recently worked on our nieces home and I was throughly impressed. All in all these guys are looking for deals on artwork and "art" being gallery wrapped giclees from Home Goods, Target ect.... unless you cater to the bottom feeders or intend to do this as a sideline to your framing there not much here.
 

Couture's Gallery

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We have rented art 5% of value for 30 days for these stagings, and most of the art sold to the buyer of the home who loved the look and wanted to keep it, thus resulting in a full price sale of the art...worked fine for us, just don't have much opporunity to do it with todays market in Real Estate as it is.
 

Paul Cascio

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I would consider charging a percentage based on the selling price of the house--maybe a 1/4% - 1/2%, payable contingent upon a sale only.

It's an easier sell, as the home seller will be a lot more receptive to a no-risk/no upfront fee deal. Prior to closing, both the Seller and Buyer could also be presented with an option to purchase.
 

Jeff Rodier

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Most home sales today won't bring in enough to pay off the loan and the real estate commission. That is why there are currently 4.5 million homes listed for sale with real estate agents and not selling. There are an additional 6-8 million homes for sale that are not listed by agents.

Take a look around at the area where you live and you will find that there is a huge number of homes for sale that are priced 10% to 40% above the value of the home. Most of these homes will revert back to the lender in forclosure proceedings.

Now what do you think the chances are that you will be paid one dime for your services. Be sure to get your artwork out of there before the lender siezes the property because the lenders only responsibility is to place the contents at the curb. Doesn't matter if it is raining or snowing on that day.

Now for those that believe the housing market will improve consider this newest hit to housing and credit. Fair Isaacs Co. the folks that created the model for credit scoring have just changed the scoring model. The new model gives much greater weight to the use of available credit in the scoring process. The closer your accounts are to the overall limit the lower the score becomes. This comes at the same time that lenders are lowering overall credit limits because they are required to have reserve assets (cash on hand) for every penny of available credit not just credit currently utilized. Pair that with the increased requirements that lenders have put in place for underwriting purposes to offset losses as a result of lax lending standards of recent years.

Now throw into the mix the fact that the so called best credit loans being Option Arms are resetting at the highest rate they will at any time. The average Option Arm loan nationwide is $300,000 with an average monthly fully amortized payment of $1600. Problem is that these loans did not require that the fully amortized payment be made but allowed for a payment of as little as $450 on that average loan. Now these loans are adjusting in mass right now through July and that $450 minimum payment will adjust to on average $2,900. The keys are being mailed back to the lenders. These are the loans that all of the speculators used so they could "Flip That House".

When the minimum payment was $450 the speculators could afford to just make the payment and let the house sit vacant untill the market turned around. Many of these investors just rented out the house while waiting the market out. These investors were able to make a little profit while paying $450 but at $2,900 they will be taking a loss of at least $1500 per month. Even the wealthy will only do this for so many months before returning the house to the lender. Mortgage loans are secured only by the property that was used as collateral so giving the house back puts no other assets at risk.

Property values are projected to fall another 25% this year and an additional 5%-8% in 2010.
 

Finest Fabric

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A different scenario here (budget wise) but we have rented out artwork for motion pictures at 5% of retail per day - anybody else had experience with this?
 

Paul Cascio

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Most home sales today won't bring in enough to pay off the loan and the real estate commission. That is why there are currently 4.5 million homes listed for sale with real estate agents and not selling. There are an additional 6-8 million homes for sale that are not listed by agents.

Take a look around at the area where you live and you will find that there is a huge number of homes for sale that are priced 10% to 40% above the value of the home. Most of these homes will revert back to the lender in forclosure proceedings.

...

Good point Jeff. It's very doubtful that owners who are upside down are going to care about staging.
 

Jill

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i have learned the hard way to duck when ever someone has a "good deal" for me. Restaurants sell food, and most waitresses can bearly do that, they are not going to push selling your art.

From watching TV i have noticed that the first thing stagers recommend is removing almost all art, as it is to personal a thing. The art they tend to leave is very neutral and blandly framed. So I see no advantage in this again they are interested in selling the house not your art. As the art must blend in and be visually unobtrusive no one would see it any way.
 

Dave

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A different scenario here (budget wise) but we have rented out artwork for motion pictures at 5% of retail per day - anybody else had experience with this?

I've done that too ...yes they do make some pictures in Michiana. I charged 10% though. :p

One area that I will stage artwork in homes at no charge is the Parade of Homes which they have yearly around here. Builder's showcase newly constructed homes and it's a big event whereby they have tours of the homes. I place a small plaque somewhere in the home saying "Framing Courtesy of Makielski Art Shop" with business cards readily available. The event is usually over a three day weekend.
 

Grumbling Mike

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10% of value per month sound doable.

if a $1,000,000 house provides $25,000 comm to the listing agent and you can create a WOW using a 5,000.00 painting at the entrance its a win win.

you may well have increased the sale price by 1% or more.

you cant really WOW with a canvas transfer, its got to be a real work.

certainly not for lower value homes but for those with income levels who would own the art you are renting.
 

Grumbling Mike

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losses are possible anywhere, in a case where you have contracted a rental you must prepare for that in the contract
ie
I the undersigned understand and agree to the terms set forth herein
-responsible to the full value etc

and thus not refunding the deposit when the painting was not returned Pat.
 

Pat Murphey

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Mike, good luck getting a $5000 deposit on a $5000 painting, and the fight with insurance adjusters for everyone involved. I was really just referring to the exposure to risk in my post. In my mind the potential hassles aren't worth the likely income.
 

Baer Charlton

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On FB
Mike, come on down to WCAF. I'll show you the area where you can shave that $5K to $50.... and we're talking real honest Oil or Acrylic.....gallery wrap ready. :D

There are a couple of ladies here who have been supporting their families very nicely from their staging business. Times are tough right now for them because their "warehouse" is empty and they get opportunities every week. They just happen to be out of props.
They are very crafty and have scoured the flea markets, antique dealers, estate sales etc over the years picking up anything that even looks, hints, may allude to, or could be adapted to Arts & Crafts and Prairie Style home accessories. What started as feathering their own nests on a budget grew into a serious business. They have seen others that had tried to do the "oh we can stage any house" and file BK because they did buy the $5,000 painting that they liked; and probably had aspirations of taking home after a while..... or they had it and grew tired of it....

Insurance has been no problem with them, as they have shown that $100 is a lot for almost any item they own. They have a $1,000 deductable I think, and everything under that is on a 'return or pay' policy that is a lien against the estate, so is settled in escrow.

But as I have said, this is THEIR profession, and they work long hours and very little home time, and at the drop of a hat their vans will turn at the least provocation of a sign saying "Estate Sale" or "Garage & Brownies sale"....

My only involvement is cleaning up or altering the occasional frame for them, or swapping out the stupid airplane picture in the Art Neauveau frame for a dummy picture (ink jet to size) of Gramma & Poppy on their wedding day.
 

traflet

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It seems to me we should leave the agents and stagers out of the loop and contact the Home Sellers. Tell them we'll do such a great job framing or reframing everything in their house that the house will sell fast, put money in their pocket and BONUS: they still have their own art.
 
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